Walmart is slashing prices and offering discounts on apparel and other items to reduce a surplus as consumers spend more for food and gasoline amid rising inflation.
“The increasing levels of food and fuel inflation are affecting how customers spend … apparel in Walmart U.S. is requiring more markdown dollars,” CEO Doug McMillon said in a press release.
Employees and managers point to more than just inflation for their crowded inventory. They say Walmart’s automatic inventory system is to blame.
“We have hit a terrible point where the system auto-orders more of the stuff we already have,” an employee in Minnesota told Business Insider.